Supplier Zhejiang Xinnet'S Ambiguous Role, Is It Coerced Or Cheater?

After Sui Tianli lost contact, the thunder wave of "private network communication" implicated many listed companies became more foggy“ How to make up the network fraud of "private network communication" and why the listed companies are so trapped in it that they can not extricate themselves is a difficult problem in the capital market.

Recently, the 21st century economic reporter found the clue of Sui Tianli trade network when investigating the thunder event of Zhongtian Technology (600522. SH), the leader of communications.

Previously, Zhongtian Technology announced that in some high-end communication business, there may be significant risks, such as lower than expected delivery of raw material suppliers corresponding to prepayment, overdue accounts receivable, and high value of remaining undelivered inventory, involving an amount of 3.75 billion. The main customer of its high-end communication business is aerospace Shenhe, which is controlled by Sui Tianli.

21st century economic reporter noticed that its main supplier, Zhejiang Xinnet, also played a very delicate role. In depth investigation found that Zhejiang Xinwang and Shanghai electric network communication trade chain has cross correlation, and that chain builder and controller is sui Tianli.

The 21st century economic reporter called Zhongtian Technology on the thunder incident. A person from its securities department said: "we have sought help from the local Nantong municipal government, and the government has set up a special office to help us. This is a wide range of cases. If there is progress in this matter, it must be announced by so many companies. There is no progress at the moment. "

Fatal high end communication service

On July 22, Zhongtian Technology took the initiative to detonate the risk, and announced that the company and its subsidiary Nantong Jiangdong Electric Technology Communication Co., Ltd. (hereinafter referred to as Jiangdong Electric Technology Co., Ltd.), which operates high-end communication business, had some abnormal contract execution. As of June 30, 2021, the consolidated prepayment of 2.135 billion yuan had been made, and the corresponding raw material supplier delivery was not as expected The overdue accounts receivable of 512 million yuan and the remaining undelivered inventory value of 1.107 billion yuan after deducting the received advance receipts may cause significant risks.

In other words, the amount of loss risk involved in this wave is as high as 3.75 billion yuan, even exceeding the sum of non net profits deducted by Zhongtian Technology in 2019 and 2020.

On the day of the news release and the trading day after the announcement, Zhongtian science and technology continuously fell and its market value evaporated by nearly 9 billion in a short week.

What position does this "high-end communication business" occupy in Zhongtian science and technology business layout?

The main business of Zhongtian science and technology is divided into four parts: optical communication, power transmission, new energy and marine equipment. In 2020, the total revenue of the four plates will reach 44.66 billion yuan, and the profit of optical communication business will reach 8.06 billion yuan. This high-end communication service (hereinafter referred to as "Qualcomm Service") of Zhongda Lei belongs to the optical communication business.

As a matter of fact, the business of Qualcomm is a new business of Zhongtian Technology in recent years. It started preparation in May 2019 and put into production at the end of 2019. The annual report of 2019 includes less than 50 million yuan of revenue excluding tax.

According to the public information, the main product of this service is the equipment for multi network integrated communication base station, which is composed of data processing module and data transmission module. The base station system can meet the security communication function of video, voice and data processing, and provide users with multi service, multi network and high reliable integrated communication service.

Although it is called "high pass service", the 21st century economic reporter found that the high pass business of Zhongtian Technology is the same as that of the private network communication business, which belongs to the theory of "changing the soup without changing the medicine".

For example, the products and services involved in the private network communication business of Kaile Technology (600260. SH) "Thunderbolt" include tunnel encryption transmission service system processor, intelligent ad hoc network data communication module, high-speed data processing embedded system and other communication base station equipment. These are not very different from the so-called high-end communication business of Zhongtian science and technology.

It is this special network communication business that will drag more than 10 listed companies including Shanghai Electric (601727), Kaile technology and Zhongli group (002309. SZ) into the quagmire of bad debt receivable.

It is worth noting that although Zhongtian Technology only started this business in 2019, the high-end communication business has experienced explosive growth in just one year. In 2020, the revenue excluding tax has soared to 2.4 billion yuan, accounting for nearly 30% of the total revenue of optical communication services from less than 1% in 2019.

Quite subtly, Zhongtian Technology's investment in this explosive high-end communication business is quite limited. The fixed assets under the name of high-end communication business is only 3.73 million yuan, and there are only 50 personnel engaged in related business and 2 people engaged in R & D. This is in sharp contrast to the revenue of 2.4 billion yuan.

However, the profitability of the mysterious high-end communication business is not very strong.

In 2019 and 2020, the gross profit margin of Zhongtian Technology's Qualcomm business is 13.12% and 15.00%, which is far less than the gross profit margin of more than 30% of optical fiber business in the same optical communication sector, and less than the 20.26% gross profit margin of the company's manufacturing industry.

With the growth of Qualcomm's business, the pressure of Zhongtian Technology's cash flow has doubled. From 2018 to 2020, the prepayment of Zhongtian Technology at the end of each year was 293 million yuan, 1.375 billion yuan and 3.740 billion yuan respectively. The funds of listed companies were consumed on a large scale and became the sword of Damocles.

In March 2020, Zhongtian Technology set up a subsidiary, Jiangdong Electric Technology Co., Ltd., to operate this business. In 2020, Jiangdong electric power technology has borrowed more than 3 billion yuan from its parent company Zhongtian Technology, which is almost 15 times of the amount in arrears of the company's second account receivable customer, far exceeding the net profit of Zhongtian Technology attributable to the parent company of 2.275 billion yuan.

High end communication service dancing on the cutting edge

Behind the rapid development of high-end communication business of Zhongtian Technology, there is a high-risk commercial operation with extremely asymmetric and variable sales and purchase payments.

According to the disclosure of Zhongtian science and technology, its sales mode is: the customer pays 10% of the contract amount in advance to its subsidiary Jiangdong Electric Technology Co., Ltd., and the customer pays 90% of the balance payment within 7 working days after the products of Jiangdong Electric Technology Co., Ltd. pass the third-party inspection and the customer's acceptance. The procurement mode is: Jiangdong Electric Power Technology Co., Ltd. prepays 100% of the purchase money with the bank acceptance bill of 10 months in advance, and the supplier completes the delivery of raw materials within 6 months after receiving the purchase money.

In other words, Zhongtian technology needs to pay the full amount for purchasing raw materials in the upstream, while the downstream customers only need to pay a 10% deposit. This payment mode with extremely asymmetric sales and purchase ends forces Zhongtian Technology to dance on the edge of the knife.

According to the public disclosure of Zhongtian science and technology, the largest customer of its high-end communication business is aerospace Shenhe Technology (Beijing) Co., Ltd. (hereinafter referred to as aerospace Shenhe). More than 90% of the revenue of high-end communication business is contributed by aerospace Shenhe, and the actual controller of aerospace Shenhe is sui Tianli.

This aerospace Shenhe is not only an "important" customer of Zhongtian Technology, but also carries out private network communication business with Huihong group (600981. SH), Kaile Technology (600260. SH), feilixin (300287. SZ), Zhongli group and other companies, and also plays the role of "big customer". However, aerospace Shenhe neither took delivery nor paid the final payment, which led to the explosion of giant thunder in these companies.

According to qixinbao, aerospace Shenhe was established in 2009 with a registered capital of 15 million yuan. It is 50% owned by Beijing saipu Gongxin Investment Management Co., Ltd. and China Academy of aerospace system science and engineering. Its legal representative is sui Tianli. Its main business includes providing communication command system, quantum encryption platform, intelligence analysis, anti-terrorism and security guarantee products, There are 29 employees.

Zhongtian Technology said that after receiving high-end communication products, aerospace Shenhe failed to pay to the company's account according to the payment term stipulated in the contract. As of June 30, 2021, overdue accounts receivable of high-end communication business totaled 510 million yuan. Recently, after several reminders, aerospace Shenhe still failed to fulfill the delivery obligations stipulated in the contract on time according to the contract requirements.

More than that, there are problems with Zhongtian's suppliers.

Zhongtian Technology said that as of June 30, 2021, the book prepayment amount of high-end communication business consolidation caliber was 2.13 billion yuan, which had exceeded the delivery period of the contract by one month, and the amount of raw materials that had not been delivered was 970 million yuan. After several communications with Zhejiang Xinnet, it has not delivered goods or returned the advance payment.

According to the company's disclosure, there are four main suppliers of Zhongtian Technology: Zhejiang Xinwang Energy Engineering Co., Ltd. (hereinafter referred to as "Zhejiang Xinwang"), fennotechpte.ltd., Jiangsu aokaisen Metal Technology Co., Ltd., and Xi'an Libo Network Technology Co., Ltd.

Among them, fennotechpte.ltd. is a Singapore enterprise, and the other three major suppliers are small and micro enterprises with less than 30 social security contributions.

What is shocking is that the amount of procurement contracts signed between Zhongtian Technology and the above three small and micro enterprises is as high as 2.7 billion yuan.

At the end of 2020, Zhejiang Xinnet, as the largest supplier of Zhongtian Technology's Qualcomm business, received 2.67 billion yuan of advance payment from Zhongtian Technology. According to the purchase contract, Zhejiang Xinnet should deliver the goods before June 2021 at least. However, up to now, only 967 million yuan has been settled.

This is not the first time that Zhejiang Xinnet has delayed delivery. In 2019, the purchase contract amount between Zhejiang Xinnet and Zhongtian Technology is 2.266 billion yuan, while the actual arrival amount is 1.318 billion yuan, accounting for only 58.16%.

Under the condition that the other three suppliers can deliver 100% of the goods, Zhongtian Technology will continue to cooperate with Zhejiang Xinnet in 2020 and sign a purchase amount of 2.615 billion yuan. The actual amount of goods delivered this year is 1.936 billion yuan, still less than 100%.

According to qixinbao data, Zhejiang Xinnet was established in 2012 with a registered capital of 100 million yuan and its legal representative is Lin Chi. Its main business is the research and development of Internet of things technology, communication system engineering, computer system engineering, communication equipment, computer software and hardware and network equipment technology development and sales, and information system integration services. The equity of the company is 100% owned by two shareholder companies, but the registered capital of the two shareholder companies is only 10 million RMB and 20 million RMB respectively.

So, how can he de, Zhejiang Xinnet, make Zhongtian science and technology 100% advance payment for purchase, and continue to maintain business cooperation in the case of repeated delays in delivery, which is incredible.

The key of Sui Tianli's chain control

When the 21st century economic reporter investigated Zhejiang Xinnet deeply, it was found that the company was still in the trade relationship chain between Shanghai Electric and the pioneering trade. In this chain, the role of Zhejiang Xinnet is very delicate, or its influence and role in the high-end communication business chain of Zhongtian technology can be reversed.

Previously, in order to recover the losses after the "thunder explosion", Shanghai Electric took Beijing Capital Venture Group Co., Ltd. (hereinafter referred to as "capital group") and Beijing Capital Venture Group Co., Ltd. Trading Branch ("pioneer trade") to court, trying to recover the overdue payment of 1.193 billion yuan and liquidated damages.

On July 23, pioneer trade initiated a lawsuit to Zhejiang Xinnet for the dispute over the sales contract, which was heard by the second intermediate people's Court of Beijing. According to the trial records held by the 21st century economic reporter, Zhejiang Xinnet has paid 10% of the advance payment for the goods purchased by the first trade. The first trade means that all the goods have been delivered to Zhejiang Xinnet, but Zhejiang Xinnet has not finished the payment yet; Zhejiang Xinnet said that did not receive the goods, unable to settle the payment.

In the lawsuit, Zhejiang Xinnet also mentioned that it was suing the third-party new generation private network communication technology Co., Ltd. (hereinafter referred to as "new generation private network"), saying that the goods were actually ordered by the new generation private network. At present, it is still unknown whether the new generation private network will receive the goods. The purpose of prosecution is to find out the basic facts of the case and whether the goods have been delivered or received.

After the judge questioned Zhejiang Xinwang and shouchuang trade respectively, the two sides acknowledged that the four companies actually bought and sold the same batch of goods. The trade chain is as follows: first trade orders from Shanghai Electric, sends them to Zhejiang Xinwang, and then delivers the goods to the new generation private network.

According to the factory side disclosure, these products and equipment are used for military and police to carry out tasks and communicate with each other.

It is worth noting that pioneer trade clearly stated in the trial that it entered the private network communication trade chain only under the introduction of Sui Tianli, and the whole chain was controlled by Sui Tianli and his team. The first trade did not know about the delivery, logistics and storage of Shanghai Electric, and did not contact Zhejiang Xinwang before, after and during the execution of the contract.

In other words, in this four node trade chain, both pioneer trade and Zhejiang Xinnet are only "middlemen" and do not contact with goods, and the upstream and downstream are related to Sui Tianli, who is the actual controller of Shanghai Xingditong, the second largest shareholder of Shanghai Telecom, a subsidiary of Shanghai Electric. Sui Tianli was once the general manager of the new generation private network, and Shanghai Xingditong was a shareholder with 30% of the company's shares. Both parties withdrew in September 2017.

Zhejiang Xinnet plays a very delicate role in the trade chain. Zhejiang Xinnet did not respond positively to the issue of receiving goods in court, but only said that it did not pay much attention to the delivery of goods“ The company is just an ordinary trading company. It acts as an intermediary for the upstream and downstream enterprises and connects the two sides together. The follow-up can play a very small role. "

A detail worth pondering is that in order to clarify the trade chain, Shanghai Electric was added as the third party in the court. It said that Zhejiang Xinnet did not receive the goods, and there is full reason to ask the court to find out whether Shanghai Electric has delivered goods and whether it has warehousing and logistics. Before the opening of the court session, the first trade had reached a consensus with Lin Chi, the legal representative of Zhejiang Xinnet, to add together. Pioneer trade believes that if Zhejiang Xinnet does not add more, there must be something wrong between Zhejiang Xinnet and Shanghai Electric.

But at the scene of the trial, Zhejiang Xinnet did not respond to the matter.

Back to Zhongtian Technology, what role does Zhejiang Xinnet play in its trade chain?

Zhongtian Technology said that as of June 30, 2021, the book prepayment amount of high-end communication business consolidation caliber was 2.13 billion yuan, which had exceeded the delivery period of the contract by one month, and the amount of raw materials that had not been delivered was 970 million yuan. After several communications with Zhejiang Xinnet, it has not delivered goods or returned the advance payment.

From the perspective of the transaction mode with pioneer trade, Zhejiang Xinnet is only a trading company, not responsible for the production of goods, and obviously does not have the capacity to produce main materials. However, it has become the largest supplier of Zhongtian Technology's Qualcomm business in 2019. The company has trade relations with Sui Tianli, and aerospace Shenhe, a downstream customer of Zhongtian Technology, is also under the control of Sui Dynasty.

Therefore, through Zhejiang Xinnet, Zhongtian science and technology trade chain may be connected with Shanghai Electric: Shanghai Electric Communication Technology Co., Ltd., a subsidiary of Shanghai Electric, supplies the products to pioneer trade, which is sold to Zhejiang Xinnet. Zhejiang Xinnet is also a supplier of Zhongtian Technology while supplying the new generation of private network.

It needs to be pointed out that Zhejiang Xinnet also appeared in the supplier list of Ning Telecom B (200468), which was also believed to be in Sui Tianli's private network trade scam, and the company's suppliers also included Shanghai Xingditong, which was controlled by Sui. The new generation of private network appears in the supplier list of new Haiyi, Kaile technology and Zhongli group.

Through Zhejiang Xinnet, Sui Tianli's trade network also formed a closed loop: some affiliated companies became the (indirect) upstream suppliers and intermediaries of some listed companies, and some affiliated companies became the downstream customers of listed companies.

Is Zhejiang Xinnet a victim or an accomplice? Still unknown.

Recently, the reporter of the 21st century economic report tried to contact Zhejiang Xinnet to understand the relevant situation, but the public telephone was not connected.

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